1. Field of the Invention
This invention relates generally to commercial liability insurance for equipment, vehicles and the like, and more particularly to an Internet business method for adjusting insurance rates for such commercial liability based upon the communication potential of the Internet.
2. Description of Related Art
The following defines the present state of this field:
In its present form construction equipment insurance, for the most part, covers the more mundane untoward events such as fire, theft, possibly some categories of weather related loses and normal liability exposure for accidents occurring in an area under the insured's auspices such as a yard. It also has lumped in the policy or as a constant in force under, a provision covering the much higher risk exposure of equipment working in the field. The underwriter does not know the actual amount of high risk exposure to which a crane will be subject. They must rely on statistically determined industry usage criteria as a basis for assigning a premium cost. If, in actuality, an insureds usage pattern is below the predetermined level than they are, in effect, paying a higher premium than need be. If they exceed the traditional industry usage threshold the underwriter is overly exposed because the premium has been determined on less than actual job site risk exposure. The present invention improves on this by breaking out high risk exposure components and providing them through an on demand system. This is advantageous to both the insurer and the insured if performed as specified in the model. It will result in the insurer providing the high risk component of coverage at the appropriate rate for the entire length of the high risk exposure period. The insured on the other hand, only pays for this coverage on an as needed basis, it is broken out in specified increments and at a predetermined rate.
The prior art teaches the extending of insurance for commercial liability but does not teach an insurance on demand, Internet based, system such as is described and claimed herein. The present invention fulfills these needs and provides further related advantages as described in the following summary.